Mba - Rip Off Or Pay Off?

[zirhk3355 1]

Self-explanatory. A good read...

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April 10, 2008

UPFRONT

Mid-career MBA grads face reality cheque

By Joanne Lee

WHEN Mr H. Loh, 38, decided to sink US$90,000 (S$124,000) into getting an Executive Master of Business Administration (EMBA) degree, he applied to the best business schools in the world.

A National University of Singapore (NUS) computer science graduate with 14 years' work experience, he thought a degree from the University of Chicago Graduate School of Business (GSB) would give him a leg up in the corporate world.

He was contemplating a move from a multi-national high-tech company to management consulting.

'I wanted a platform for a mid-career switch but could not afford to take two years off to do a full-time programme in the United States,' said the father of three.

Given the chunky investment, he expected his post-master's remuneration package to reflect his higher educational achievement.

So it was a reality check when a management consulting firm offered him a relatively junior position last year - at a 25 per cent pay cut.

'It came as a shock initially,' he said. 'I felt short-changed but hopefully future growth will make up for the upfront hit.'

Unlike fresh graduates or those with a couple of years' work experience seeking to master generic business concepts through a full-time MBA course, mid-career professionals like Mr Loh look to build on their experience through the executive programme, known as EMBA.

Typically, EMBA candidates range in age from the mid-30s to late 40s, with at least 10 years' working experience. Because they have mortgages to pay and other commitments, they are loath to disrupt their careers for full-time two-year courses.

The EMBA programmes are structured such that students come together for an intense week-long session, then return to their day jobs for the rest of the month, over 11/2 years - a hefty toll on those who work and study simultaneously.

In Singapore, there are at least five EMBA programmes that rank highly in annual global rankings conducted by US business news media.

Chicago GSB and Insead feature regularly in the top 10 and offer full degrees here. Rutgers, the state university of New Jersey, rolled out its programme in January.

Meanwhile, the University of California Los Angeles offers a joint accreditation with NUS; the University at Buffalo in New York offers a joint degree with Singapore Management University.

More executives have been going back to school in recent years with Spring Singapore launching a $20 million Management Development Programme at NUS and Nanyang Technological University last year.

Mid-career professionals seem willing to shell out big bucks to attend brand-name schools, which have raised fees and expanded. About half are sponsored by their companies, but many invest their own savings.

At the Chicago GSB here, the fees have almost doubled to US$102,000 this year from US$65,000 in 2000, when it started with its first intake of 90 students. Its EMBA programme is ranked the seventh best in the world by the Financial Times.

It is building a new campus at Tanglin Village with 18 study rooms, a student lounge as well as 29 offices and meeting rooms. Its current premises at the historic House of Tan Yeok Nee on Penang Road have become too small.

Insead, ranked ninth by the Financial Times this year, is the only other business school among the top-ranked with a satellite campus here. Its fees have also gone up, from US$131,000 in 2004 to about US$138,500 for this year's intake.

Two years ago, Insead centralised its global EMBA programme with enrolment out of its Fontainebleau campus in France. Just this year, its Asian campus here started offering a joint EMBA with Beijing's Tsinghua University.

What makes the EMBA so coveted is the anticipated increase in salary after graduation. Chicago graduates polled by the FT reported an 87 per cent increment; Insead graduates reported a 65 per cent rise.

Alas, the hefty increments do not seem to apply to EMBA holders in Singapore.

Said Mr Charles Moore, managing director of executive search firm Heidrick and Struggles: 'I think there is an over-expectation by EMBAs. They expect high salaries upon graduation but that's not how it works in this market.

'Employers here tend to take a more pragmatic approach. They do value top-class EMBAs but only as a factor that is helpful in choosing the right candidate.'

Other headhunters tell the same story.

Mr Gerard Chai, managing director of Korn Ferry, explained that it is natural for employers to choose the cheaper candidate since white-collar workers here mostly have good first degrees, given Singapore's emphasis on education.

'Local employers tend to be much more cost-conscious. A company will hire the candidate that returns the best value for money,' he says.

Ms Ria Sugita, Chicago GSB's marketing director, said: 'It's true, EMBA graduates may have to accept a relatively junior position. But given their work experience, most rise faster up the ranks and get promoted quicker.'

Nevertheless, to cater to those who might not recognise the value of an EMBA degree but still want to improve their business skills, the top schools here are branching out into shorter, more affordable courses.

Chicago is planning to offer five-day courses in leadership, negotiation, pricing strategy and the like. Insead already offers a two-week course called the Asian International Executive Programme.

�For Mr Loh however, such courses are not the same as a complete degree.

He said: 'With hindsight, I would do it again but probably a bit earlier.'

joannel@sph.com.sg

Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access

[NiVleK 0]

MBA is a master's degree in business administration.. And yes it's a DEGREE course. Had been popular w/ engg grads who wish to gain insights to wat biz & mgmt is all abt.

"MBA designation originated in the US, emerging fm the late 19th century as the country industrialized and companies sought out scientific approaches to management."

IMHO it's hard to associate ROI on a MBA directly.. rather treat it a self improvement course a way to open up yr mind & prepare u for the nxt phase of yr life/ career.

Do u need a MBA to get into mgmt? No.

Do u need a MBA to climb a corporate ladder? Yes by large.

In many large MNC, mgmt or leadership team do hv untold successor plan layout. The Q u probably want to ask is how u can b one of the successor candidates within the pool of Co talent. Every individual hv their own set of values & principles that they hold by. Observe wat yr mgmt/ leaders hv. Work towards dat & cultivate similar skill set, along the way added yr own values. I believe every individual is unique & how u add value to an organization & establish ppl network will help to determine how far u will go.. Hope this helps !!

This is very true!! Observe what your snr mgmt is doing and follow their style and incorporate your own.

[NiVleK 0]

Is a master in any case worth it? I am also doing a master degree now and it is structured in a way which has an intensive week but still i have to be doing my job.

I do need to say that doing my masters, preparing marriage, monitoring reno and keeping up with the same standard of work is tough but possible. Like what my big boss told me, yes you can take the masters, but do note that having this masters does not necessary mean faster promotion or better pay increments. Your time management will be tested to the limits as you still have to produce the same standard and quality of work whilst embarking on the master's course. If your work quality declines, you might even be promoted slower. In the end, i still took up the challenge as my aim is to acquire more knowledge on that field.

MBA? I will think about it...after i finish my current technical masters...

Edited April 10, 2008 by NiVleK

[l_club23 0]

Self-explanatory. A good read...

-------------------------

April 10, 2008

UPFRONT

Mid-career MBA grads face reality cheque

By Joanne Lee

WHEN Mr H. Loh, 38, decided to sink US$90,000 (S$124,000) into getting an Executive Master of Business Administration (EMBA) degree, he applied to the best business schools in the world.

A National University of Singapore (NUS) computer science graduate with 14 years' work experience, he thought a degree from the University of Chicago Graduate School of Business (GSB) would give him a leg up in the corporate world.

He was contemplating a move from a multi-national high-tech company to management consulting.

'I wanted a platform for a mid-career switch but could not afford to take two years off to do a full-time programme in the United States,' said the father of three.

Given the chunky investment, he expected his post-master's remuneration package to reflect his higher educational achievement.

So it was a reality check when a management consulting firm offered him a relatively junior position last year - at a 25 per cent pay cut.

'It came as a shock initially,' he said. 'I felt short-changed but hopefully future growth will make up for the upfront hit.'

Unlike fresh graduates or those with a couple of years' work experience seeking to master generic business concepts through a full-time MBA course, mid-career professionals like Mr Loh look to build on their experience through the executive programme, known as EMBA.

Typically, EMBA candidates range in age from the mid-30s to late 40s, with at least 10 years' working experience. Because they have mortgages to pay and other commitments, they are loath to disrupt their careers for full-time two-year courses.

The EMBA programmes are structured such that students come together for an intense week-long session, then return to their day jobs for the rest of the month, over 11/2 years - a hefty toll on those who work and study simultaneously.

In Singapore, there are at least five EMBA programmes that rank highly in annual global rankings conducted by US business news media.

Chicago GSB and Insead feature regularly in the top 10 and offer full degrees here. Rutgers, the state university of New Jersey, rolled out its programme in January.

Meanwhile, the University of California Los Angeles offers a joint accreditation with NUS; the University at Buffalo in New York offers a joint degree with Singapore Management University.

More executives have been going back to school in recent years with Spring Singapore launching a $20 million Management Development Programme at NUS and Nanyang Technological University last year.

Mid-career professionals seem willing to shell out big bucks to attend brand-name schools, which have raised fees and expanded. About half are sponsored by their companies, but many invest their own savings.

At the Chicago GSB here, the fees have almost doubled to US$102,000 this year from US$65,000 in 2000, when it started with its first intake of 90 students. Its EMBA programme is ranked the seventh best in the world by the Financial Times.

It is building a new campus at Tanglin Village with 18 study rooms, a student lounge as well as 29 offices and meeting rooms. Its current premises at the historic House of Tan Yeok Nee on Penang Road have become too small.

Insead, ranked ninth by the Financial Times this year, is the only other business school among the top-ranked with a satellite campus here. Its fees have also gone up, from US$131,000 in 2004 to about US$138,500 for this year's intake.

Two years ago, Insead centralised its global EMBA programme with enrolment out of its Fontainebleau campus in France. Just this year, its Asian campus here started offering a joint EMBA with Beijing's Tsinghua University.

What makes the EMBA so coveted is the anticipated increase in salary after graduation. Chicago graduates polled by the FT reported an 87 per cent increment; Insead graduates reported a 65 per cent rise.

Alas, the hefty increments do not seem to apply to EMBA holders in Singapore.

Said Mr Charles Moore, managing director of executive search firm Heidrick and Struggles: 'I think there is an over-expectation by EMBAs. They expect high salaries upon graduation but that's not how it works in this market.

'Employers here tend to take a more pragmatic approach. They do value top-class EMBAs but only as a factor that is helpful in choosing the right candidate.'

Other headhunters tell the same story.

Mr Gerard Chai, managing director of Korn Ferry, explained that it is natural for employers to choose the cheaper candidate since white-collar workers here mostly have good first degrees, given Singapore's emphasis on education.

'Local employers tend to be much more cost-conscious. A company will hire the candidate that returns the best value for money,' he says.

Ms Ria Sugita, Chicago GSB's marketing director, said: 'It's true, EMBA graduates may have to accept a relatively junior position. But given their work experience, most rise faster up the ranks and get promoted quicker.'

Nevertheless, to cater to those who might not recognise the value of an EMBA degree but still want to improve their business skills, the top schools here are branching out into shorter, more affordable courses.

Chicago is planning to offer five-day courses in leadership, negotiation, pricing strategy and the like. Insead already offers a two-week course called the Asian International Executive Programme.

�For Mr Loh however, such courses are not the same as a complete degree.

He said: 'With hindsight, I would do it again but probably a bit earlier.'

joannel@sph.com.sg

Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access

Better to take full-time MBA rather than an EMBA